Tractor company pays Rs 40cr for 6-ground Chennai plot
Living up to the reputation of an overheated realty market, downtown Chennai recorded a bulge-bracket real estate transaction involving two prominent institutions of the city last week.

Leading management institute — Institute for Financial Management and Research (IFMR) — has sold a six ground (one ground is 2,400 sqft) plot on the upmarket Kothari Road in Nungambakkam for a record 40.31 crore, or 6.71 crore per ground. The buyer is APC Tractor, a part of Tractors and Farm Equipments (TAFE) of the Amalgamations Group. With 7% stamp duty and 1% registration fees, the landing cost of the property is 7.25 crore per ground for TAFE.

TAFE, which operates out of Nungambakkam High Road, bid for the land through an auction facilitated by HDFC Realty Fund. The nativity factor is said to have influenced TAFE's decision.

The TAFE management could not be reached for comment. The tractor major is expected to build its corporate office on this plot, said sources.

IFMR officials said they would make an "appropriate statement only at an appropriate time".

Chennai real estate prices are high but if you look in totality it is still behind Bangalore and in volume it is behind pune also so I dont expect it to pick in volume but the rate are here to stay expect small correction.

Real estate sales have slackened in all the major cities when compared to same period in the previous financial year.In fact the price in chennai has gone up by 35 %.Number of residential units under construction is 14900 in chennai is also the highest amongst all the major metros in the first two qtrs of the calender year 2012.http://smartinvestor.business-standa...slow_in_Q2.htmIn the last one year, housing prices have climbed up by up to 35 per cent in Chennai, 30 per cent in Greater Noida, 33 per cent in Noida, 30 per cent in Gurgaon and Mumbai each, according to the report. On the other hand, end users’ market like Bangalore and Hyderabad has seen just a three to four per cent increase in prices, respectively, over the past one year, while Kolkata has seen a contraction of nine per cent.
Also seehttp://www.thehindu.com/todays-paper...cle3725007.ece

The Tamil Nadu Housing Board is calling for joint ventures and re-development of housing board units to increase housing supply within Chennai and major towns and cities.

The public sector housing provider, which does not have captive land bank, is looking at alternative models to launch projects. Also, with land costs and the procedures for land acquisition complicated and time consuming, the Board is examining a joint ventures, public-private partnerships, and land pooling to gain access to land.

PROJECTS LAUNCHED

It has launched a series of re-development projects in Board and Government rental housing schemes.

In re-development, the Board will take advantage of the larger Floor Space Index to demolish old houses and build new ones .

The Index which is a statutory limit on the ratio of built up space to the land area is bigger now. A few decades back only about 50 per cent of the land area was exploited but now the regulations provide for built up space that is 1.5 times or even twice the land area.

At Mandavelipakkam, CIT Nagar in Nandanam and Thirumangalam, over 272 rented apartments will be replaced by over 1,140 new houses.

At Foreshore Estate, over 1,112 apartments have been demolished and statutory approvals are being sought for building 2,385 apartments, of which, 1,610 are planned in the first phase. The Board will be going in for planning permission next week.

JOINT VENTURES

Similarly, it hopes to tie up with the Housing Board flat owners’ associations for similar re-development work.

Typically, apart from building more number of apartments using the bigger built up space allowed, existing owners get cash compensation and a larger house depending on the land area available.

The Board has also called for land owners with over 25 acres land within a 40 km radius of Chennai and in other District Head Quarters similar parcels of land within 5-15 km for joint venture development.

For the 300-acre township planned near Thirumazhisai to the west of Chennai, the Board needs a few acres of land for approach roads. Most of the land is now available with it. It hopes to use the land pooling concept — give the land owners a part of the developed land as compensation.

The owners get land with road access and provision for utilities and ready-to-build space in return for ‘raw land.’

Akshaya is advertising that their soon to be launched 'ABOV' property in OMR is Tamilnadu's tallest residential property. Hiranandani is already ~28 floors and TVH again is 30 floors. The signature tower of Arbatross is 45 floors. So i dont know how many floors ABOVE will have. I enquired but they are not disclosing much. Its coming in Padur, OMR and targeted at HNIs only with price of each flat in crores.

They are going to launch township project in Thoraipakkam (OMR) & Sembakkam (Velacherry Tambaram road) also

Akshaya is advertising that their soon to be launched 'ABOV' property in OMR is Tamilnadu's tallest residential property. Hiranandani is already ~28 floors and TVH again is 30 floors. The signature tower of Arbatross is 45 floors. So i dont know how many floors ABOVE will have. I enquired but they are not disclosing much. Its coming in Padur, OMR and targeted at HNIs only with price of each flat in crores.

They are going to launch township project in Thoraipakkam (OMR) & Sembakkam (Velacherry Tambaram road) also

Akshaya is advertising that their soon to be launched 'ABOV' property in OMR is Tamilnadu's tallest residential property. Hiranandani is already ~28 floors and TVH again is 30 floors. The signature tower of Arbatross is 45 floors. So i dont know how many floors ABOVE will have. I enquired but they are not disclosing much. Its coming in Padur, OMR and targeted at HNIs only with price of each flat in crores.

They are going to launch township project in Thoraipakkam (OMR) & Sembakkam (Velacherry Tambaram road) also

First let them complete their existing project in maraimalai nagar. I
Am a victim of that.

There is a lot of curiosity about whether realty prices in Chennai are moving up, down or staying stable. Industry analysts have noted a slump in sales, which has prompted buyers to entertain hopes that prices might soften. Property Plus spoke to industry watchers to gauge the prevailing mood in the residential realty sector.

What everyone agrees on is that Chennai is a stable market where prices are driven by the end-users. “Residential property prices move in accordance with actual sales,” says Badal Yagnik, MD, Chennai & Coimbatore, Jones Lang LaSalle India, adding that “residential property in Chennai is driven more by location than by specifications and amenities.”

Thus, prices have moved up based on the proximity to IT parks. “Many projects are coming up close to the IT parks, which are priced at a higher range,” says Aditya Verma, COO and EVP, Makaan.com. Old Mahabalipuram Road, for example, has been influenced the most due to IT companies setting up base there. “The average price per square foot in this area has appreciated 29.57 per cent in the last one year, moving from an average Rs.2,715 in August 2011 to Rs.3,950 in August 2012,” says Verma. Other localities that have become popular because of the IT boom are BST Road, Sholinganallur, Tiruporur, Tambaram and Oragadam.

In other areas, however, real estate prices might have actually gone down. According to Makaan.com Price Trends, a tool that captures the property prices movement in major Indian cities, Chennai property prices have dropped by approximately 12.6 per cent in the last one year. The average price per square foot has dropped from Rs.4,437 in August 2011 to Rs.3,800 in August 2012. In the second quarter of 2012, prices appear to have stayed stable because of dampening demand.

One of the key reasons affecting realty prices in the city seems to be the scarcity of land and the high cost of premium FSI within the city. “The available options in these locations have shot way past the budgets of even the upper middle class,” says Yagnik. Within Chennai city, prices for a standard flat with minimum or no amenities can range from Rs.1.5 to Rs.5 crore. “Other factors driving capital values in the residential market are increasing construction costs and increasing borrowing costs,” says N. Hariharan, director, Chennai, Cushman & Wakefield.

Given this, developers are looking increasingly at suburban locations. Unfortunately, in these areas, infrastructure development has been abysmally poor. This could be one big reason why prices and sales have remained stagnant.

In the near future, prices do not show an inclination to rise. “In order to uphold sales enquiries, developers might refrain from increasing prices,” says Hariharan.

As Verma points out, developers in many markets such as Chennai, Bangalore and Mumbai are holding property prices to avoid panic among the investor community.

The next few months, before the festive season hits, might prove crucial for the Chennai realty sector. “The realty market is facing multiple head winds that will keep property prices under check at least in the medium term. However, a short-term correction is actually healthy for the market and could attract fence-sitters, thereby boosting sentiments,” says Verma. For buyers waiting for some indicators, this sounds like a small reprieve

Chennai-based Golden Homes Pvt Ltd has launched a new, mega project on Poonamallee High Road called Golden Opulence. Spread across 8.10 acres of land, the first batch of 815 flats is under construction.

The project will have seven towers of 16 floors and 17 floors, with both 2BHK and 3BHK flats. Flat sizes will range from 690 sq.ft to 2,067 sq.ft; with an initial price of Rs. 3,895 per sq.ft. Apart from amenities such as 24-hour security, pool, and spa, the project plans to include crèche, in-house physician, pharmacy, library, restaurant and ATMs.

The company, which announced a gift for bookings made in the offer period, has tied up with leading banks for housing loans.

Emerging trends in Chennai realtyhttp://content.magicbricks.com/emerg...chennai-realty
Chennai is poised for a major turnaround in real estate development. So far, there has been no scope for the growth of large-sized township projects within the city. Developers had been more than happy to build 12-30 units with limited or no amenities, little or no green cover and extremely restricted open spaces. All these restricted developments will go a transmogrification in the coming years, says a report by Jones Lang LaSalle.

In the coming months, Chennai will see a major change in this aspect, with a string of township projects by developers of national stature under execution and nearing completion. These township projects have minimal plot coverage, which paves the way for large green cover and ‘lung space’ within the project. This is an added incentive to opt for community living, which was largely unheard of until as late as 2006.

The new game changers in the Chennai residential real estate space are generous landscaping, serene environment, schools within the campus, big club houses, health club facilities for both indoor and outdoor sports, multiplexes in the vicinity, health care, restaurants and large swimming pools, says Badal Yagnik, Managing Director, Chennai & Coimbatore, Jones Lang LaSalle.

Supply & Demand

Chennai’s residential market is witnessing considerable demand in the affordable segment – specifically for units in the price range of Rs 35-60 lakh – in locations which offer an acceptable degree of social infrastructure. Overall, Chennai’s approximate absorption of residential units is said to be in the range between 28,000 and 30,000 units per annum, with most of the absorption taking place on OMR and near the IT corridor.

It is still a predominantly end-user driven market, with 60-65 per cent of the buyers looking for self-occupation. Residential space investors in Chennai tend to take a long-term view, the modus operandi being to look at off-loading their holdings within an average time span of 5-7 years. This attribute further strengthens the market’s end-user behaviour.

Pricing

Chennai is a stable market wherein residential property prices move in accordance with actual sales. Price volatility due to other factors has been completely excluded. As a result, prices have dropped at almost all the projects over the last few years.

Moreover, residential property in Chennai is driven more by locations rather than by specifications and amenities. The scarcity of land parcels and also the cost of premium FSI within the city have created relentless upward pressure on residential product pricing. This has resulted in the available options in these locations shooting way past the budgets of even the upper middle-class. Prices for standard apartments with minimum or no amenities within Chennai city can range from Rs. 1.5 crore to 5 crore.

Lack of locations with good infrastructure has hindered the supply of land, which has resulted in pricing going upwards whereas the pricing remains stable or stagnant in locations which lack good social infrastructure. The need of the hour in Chennai’s residential real estate market is a good supply of land so that the new locations can be opened up and the requisite social infrastructure and other utilities can be put in place.Despite the above said newsI heard that owing to poor basic infrastructure like piped water,sewage connection lack of entertainments despite some big builders arranging to provide good schools ,clinics and pharmacies there are few takers in far off suburbs in the direction of OMR and sriperambadur-oragadam belt despite the place of work is nearby.Consequent to which big and reputed builders like Hiranandani,TVH,L&T,DLF,Sriram and many others have put on hold subsequent phases.Predominantly end use markets are no good for massive growth like in Bangaluru,Mumbai and NCR.The builders from outside have overestimated the chennai market when they started the huge projects in a big way in 2007

The Golden opulence as per their website is "10" minutes from Koyambedu flyover. I guess it may take another 10 minutes.

It is in Poonamallee bypass road which is around 10Kms from Koyambedu flyover so they simply calculated 60km/hr speed and declared 10min and it is only possible in midnight otherwise 15-20min.
Golden homes based in annanagar has done many projects then they concentrated mugapair and slowly moved nolumbur and vanagaram and now in poonamallee. Golden homes quality is really very good.